The homestead exemption in Texas got a little bit sweeter for 2026! Every homeowner should take advantage of this tax-saving opportunity. You can save substantially on your property taxes every year, but only if you have the homestead exemption in place for your primary residence with the appraisal district for your county. Make sure that you capitalize on Texas’s 2026 homestead exemption!
What is the homestead exemption? Well, I’m here to tell ya… and also tell you how to file for the homestead exemption on your primary residence. It’s easier than you think!
What is the New Texas Homestead Exemption?
The homestead exemption is a legal provision that lowers the taxable value of a primary residence, thereby lowering property taxes for homeowners. Here in Texas, voters recently approved Proposition 13, which increased the exemption on school taxes to $140,000. This means that if your primary residence is appraised at $300,000, the school taxes will be assessed only on the first $160,000 of the appraised value.
There are also more savings for senior and disabled homeowners! Homeowners over 65 or disabled qualify for an additional $60,000 in exemptions, resulting in a total exemption amount of $200,000. In these groups, Houston homeowners with a primary residence appraised at $300,000 will have school taxes assessed on just the first $100,000 of appraised value.
Properties that are homesteaded also benefit from a 10% annual appraisal value cap on the school taxes. Let’s say an area is appreciating rapidly, and your $300,000 home is now worth $400,000 after just one year. The appraisal district will only increase the taxable amount by 10%, to $330,000. For seniors, the value of homesteaded properties will freeze when you turn 65!
Real Estate Tax Savings Beyond the Texas Homestead Exemption
Good news: There are savings to be had on the taxes assessed by the county and city, too! If your homestead property is in Harris County or Fort Bend County, these counties exempt 20% of the property’s appraised value from taxes. On a $300,000 property, for example, the county taxes in Harris and Fort Bend are assessed on the first $240,000 only. If you’re in Montgomery County, 10% of the appraised value is exempt from county taxes.
Sadly, Brazoria County offers no exemption yet. (Don’t stop believing!)
The cities of Houston and Katy are both very generous with municipal property tax privileges, offering an exemption of 20%. Conroe also offers a 20% reduction on the value upon which they assess taxes. Sugar Land and Missouri City generally exempt up to 15%, while Pearland exempts a meager 2.5%. Alvin offers the state-mandated flat-rate exemption of $5,000. Seniors also benefit from additional tax relief from the counties and cities.
How to Sign Up for a Texas Homestead Exemption in Houston
Considering how great the savings are, you might be wondering how to sign up! Well, I’m going to tell you that it’s super easy. Here are all the steps you’re going to need:
1. Update your driver’s license.
This is the No. 1 reason for homestead exemption applications to be rejected in Texas. The address on your state-issued ID must exactly match the address of the home you are claiming.
2. Fill out your application.
Next, visit the website of your local appraisal district and find the Residence Homestead Exemption Application form. Then, fill it out. Be sure to check all applicable boxes: Don’t just check “General Homestead.” If you are 65+, disabled, or a disabled veteran, check those boxes too to unlock the extra $60,000+ in exemptions.
3. Mail your application form to your appraisal district.
Lastly, send the form to your appraisal district. Some may require that you deliver or mail the form to their office; others may allow online submission, and HCAD has a mobile app to make the application process even easier! The deadline to file is between January 1 and April 30, but if you’re late, you can apply retroactively for up to two years.
My #1 Homestead Exemption Tip
I have one BIG tip for you: Remember that applying for the homestead exemption is 100% FREE. Don’t be scammed by a company soliciting to do this for you for a fee. (Many want around $100!)
Applying for a homestead exemption in Texas is meant to be super easy, and you can do it yourself. If you need help, call your Texas REALTOR® at Angel Fultz Realty instead! We’ll walk you through the process and make sure that you Capitalize on Texas’s 2026 Homestead Exemption.